Colorado's Oil and Gas Industry Stands United

Over 2,000 oil and gas industry employees rally at the Colorado State Capitol

DENVER - In a strong show of support for the oil and gas industry, state troopers estimate 3,500 people rallied on the steps of the Colorado state capitol this afternoon. Organized by local energy companies, the rally was attended by industry employees, their families, and members of the community who stand behind this vital part of Colorado's economy. 

"As we face yet another attempt by anti-oil and natural gas activists to ban new development in Colorado, it's incredible to see our employees stand together and fight for their industry, their livelihoods, and the jobs they need to keep food on their tables," said COGA President and CEO Dan Haley. 

"The industry in Colorado supports more than 100,000 jobs and generates $31 billion dollars in economic activity. A ban of our industry would not only hurt oil and natural gas families but would have severe ripple effects throughout Colorado's economy. If approved by voters, Initiative 97 would kill an estimated 147,000 jobs by 2030 - many of them outside our industry due to the interconnectedness of our economy and the important role energy plays within it. Colorado's energy employees take great pride in their work - and their jobs - and today their voices were heard loud and clear. We are proud to work here. We are proud to live here. And we stand united as Coloradans."

Led by Liberty Oilfield Services, CEO Chris Wright, the rally featured short speeches thanking members of industry for their contributions to the economy and our communities. The speaker lineup included former Secretary of the Interior under President George W. Bush, Gale Norton; CEO of the Tennyson Center for Children, Ned Breslin; CEO of Petroshare and former Denver Bronco safety, Steve Foley; and VP of Civic Engagement for ACE Scholarships and State Representative for HD - 7, James Coleman. 

"The modern world is not possible without oil and gas," said Liberty's Chris Wright. "Together, with dramatic advances in human liberty, the mass production of oil and gas has improved the human condition in ways that would have been simply unimaginable to our ancestors. I felt tremendous pride today as our industry stood together to celebrate our contributions to not only Colorado but humankind."

Secretary Norton touted the advances our country has made in a relatively short time. "American energy independence was once thought to be impossible, yet with advances in technology, our country is rapidly moving in that direction. In 2006, the U.S. imported 60 percent of our oil. This year, we are more secure because we rely on foreign sources for only 15 percent and that number continues to decline. I think this is something we should celebrate."

The strong turnout at the rally serves as a reminder that the oil and natural gas industry is not only a critical piece of our modern economy and contemporary society, but it is also comprised of Coloradans who love living and working in our great state. 

Recent Analysis of Initiative 97

Colorado Oil and Gas Conservation Commission

Common Sense Policy Roundtable

About COGA

Founded in 1984, the Colorado Oil & Gas Association's (COGA) mission is to foster and promote the beneficial, efficient, responsible and environmentally sound development, production and use of Colorado oil and natural gas. COGA is a nationally recognized trade association that aggressively promotes the expansion of Rocky Mountain natural gas markets, supply, and transportation infrastructure through its growing and diverse membership. 

University of Colorado Economic Study Shows the Oil and Gas Industry is Key to Colorado’s Economic Health and Stability

For Immediate Release
December 29, 2015

Contacts:
Doug Flanders
303-861-0362
[email protected]

Rachel George
[email protected]

New Study Shows Positive Impact of Oil and Gas to Every Coloradan

DENVER (December 29, 2015) – The oil and gas industry in 2014 pumped $31.7 billion into Colorado’s economy, according to a new economic study by the Business Research Division of the Leeds School of Business, University of Colorado at Boulder. The study, released today by the Colorado Oil & Gas Association (COGA), demonstrates the vital role the industry plays in the state’s economy.

Overall, the report found, the industry recorded $15.8 billion in production value, accounting for 38,650 direct jobs with average annual wages in excess of $105,000 —twice the average wage of all industries in Colorado. The total economic impact of the industry was $31.7 billion in 2014, supporting 102,700 jobs and $7.6 billion in compensation.

The report, Oil and Gas Industry Economic and Fiscal Contributions in Colorado by County, 2014, conducted by University of Colorado Boulder researchers Brian Lewandowski and Richard Wobbekind, found that in 2014 the oil and gas industry supported over 100,000 high paying workers and their families.

“The capital investments and industry production create jobs, income, wealth, and taxes, notably concentrated where production exists; however, as tax dollars flow into the state general fund and cash fund, the outflow of these dollars impacts every citizen in the state through investments in education, transportation, and others, “ the report stated.

Dan Haley, President and CEO of COGA said, “The industry’s overall tax bill represents approximately $600 of tax revenue per household in the state, and this does not include the industry’s corporate tax bill. Every Coloradan is positively impacted by this industry, no matter where you live.”

The report also details the significant amount of tax revenue generated by the oil and gas industry for school districts, as well as state and local governments that is well “beyond what other industries contribute. … Ad valorem taxes, for instance, are 3 times higher for oil and gas production than for commercial property within the state and 11 times higher than residential property.”

“Clearly, even as we work through this period of lower commodity prices, the oil and gas industry’s impact on Colorado’s economy is significant,” said Haley. “The industry continues to provide, and support, thousands of good paying jobs in all corners of the state. Governments across Colorado also depend on the oil and gas industry to pay for much-need public services. Without revenue from this industry, we would not be able to provide the necessary funding, or would have to further raise taxes, for public schools, roads, parks, and many other government services that Coloradans depend on.”

The study also found:

·       The oil and gas industry paid over $434.7 million in property taxes in 2014 and accounted for $156 million from the Colorado State Land Board School Trust distribution or 88 percent of the overall distribution of $178 million.

·       Severance tax revenue increased 92.9 percent from 2013 to 2014, generating $330 million in 2014 compared to $171 million in 2013.

·       In total, the oil and gas industry contributed over $1.1 billion in revenues to state and local governments, school districts, and special districts.

·       34 counties had oil production and 38 produced natural gas; 37 of Colorado’s 64 counties recorded taxable oil and gas property.

·       90 percent of Colorado’s taxable oil and gas property is in five counties: Weld, Garfield, La Plata, Rio Blanco and Montezuma.

·       Weld County produces 86 percent of the state’s oil and 25 percent of its natural gas.

·       Weld and Garfield alone accounted for 80 percent of drilling permits in 2014, with Weld having more than 66 percent of all active rigs in the state.

While Weld and Garfield Counties are the leaders in production, Denver, Weld, Mesa, Garfield, and Adams counties are the “center of employment for the industry,” accounting for 79 percent of the total direct jobs. Interestingly, the City and County of Denver had the most direct industry jobs in the state with nearly 13,000 paying over $161,000 dollars a year.

“This study clearly shows that cities and counties that either don’t have or have limited oil and production are reliant on our positive contributions to their community. When any new rules or regulations are being considered that impact oil and gas production, Weld and Garfield Counties’ voices must be heard,” Haley said. “We must avoid the domino effect of production in these two counties being negatively impacted and then the rest of the state’s employment and revenue declining as well.” 

This study used publicly available industry data to quantify the economic impacts of the industry in Colorado by county. The study examined the economic indicators and impacts to the county level, looking at employment, wages, and well activity to economic and fiscal impacts.

Go to the COGA website to see the full report on the 2014 oil and gas industries economic and fiscal contributions in Colorado.

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Colorado Oil & Gas Association Confident Supreme Court Will Rule in Favor of Current Law, Confirming Illegality of Local Oil and Gas Bans

For Immediate Release
 
Contacts:
Doug Flanders
303-861-0362
[email protected]
 
Rachel George
[email protected]
 

 
DENVER (December 9, 2015) – Today, the Colorado Supreme Court heard two appeals challenging the legality of Longmont's ban and Fort Collins' five-year moratorium on hydraulic fracturing. 
 
Dan Haley, President and CEO of the Colorado Oil & Gas Association (COGA), said “Our attorneys made a strong case based on long-standing legal precedence, and we are confident that the Supreme Court will agree that the ban implemented in Longmont and the Fort Collins' moratorium are illegal and preempted by current law.  We are confident that the Supreme Court will provide further clarity regarding the primacy of the state in oil and gas regulation.”
 
The first case, which was heard at 9 a.m., was the City of Longmont v. Colorado Oil and Gas Association (COGA) and the Colorado Oil and Gas Conservation Commission (COGCC). The case involved a challenge to the Longmont ban on the use of hydraulic fracturing within its borders as well as the storage of hydraulic fracturing waste. The appeal is from Judge Dolores Mallard’s decision in Boulder County court that Longmont’s ban was operationally preempted by state law because it conflicted with state law.
 
The second case, heard at 10 a.m., was the City of Fort Collins v. COGA. In this case, COGA challenged the validity of Fort Collins’ five-year moratorium on hydraulic fracturing and the storage of hydraulic fracturing waste within Fort Collins. Judge Gregory M. Lammons in the Larimer County District Court held that Fort Collins’ moratorium was operationally preempted because it conflicted with state law. He also held the city’s five-year ban was impliedly preempted by the 1992 Supreme Court decision in Voss v. Lundvall Brothers. 
 
Haley believes that the court will rule in COGA’s favor and added “While oil and gas was the catalyst for the action, these cases are much more than just about oil and gas.  These two cases truly get to the heart of where the state’s authority ends and local government’s begins. Depending on the outcome, the decisions could have tremendous impact across all businesses in Colorado and how and if they can operate in our communities if certain people just decide they don’t like someone’s business.”
 
The main issues in these cases are the extent to which home rule governments can ban an activity extensively regulated by the state. While local governments can regulate certain aspects of land uses pertaining to hydraulic fracturing operations, COGA argued today to the Supreme Court that they may not ban the activity altogether.
 
Specifically, COGA argued that allowing local governments to enact such bans would contradict the broad language in the Oil and Gas Conservation Act giving the State authority to foster the responsible, balanced development and production of oil and gas in a manner consistent with protection of public health and protective of the environment. 
 
COGA also argued that the bans undermine the extensive regulations of the COGCC, which regulates virtually every aspect of hydraulic fracturing in over two hundred pages of regulations. COGA argued that under well-established Colorado precedent, local governments may not ignore the plain language of the Oil and Gas Conservation Act or the COGCC’s extensive regulation by banning completely the use of hydraulic fracturing within their border.   
Finally, COGA argued that under the 2009 Colorado Supreme Court decision in Colorado Mining Association v. Summit County, Fort Collins and Longmont are impliedly preempted from attempting to ban the use of hydraulic fracturing because of the State’s strong interest in the regulation of oil and gas
 
Haley concludes said that none of this changes what the industry must continue to do, “These cases - and the ultimate outcome -- have not, and will not, change our commitment to Colorado and its communities. We will continue to do the difficult and important work of finding reasonable and workable solutions with our friends and neighbors throughout the state so we can responsibly develop our natural resources.
 
“The oil and gas industry is too critical to the well-being of our state, economically, and to our future, to do anything less. This industry will continue to provide an affordable and reliable domestic supply of energy for everyone - including those who oppose the industry and its employees and families”
 
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Business Groups Underscore Importance of Fracking Ban Case

Supreme Court Will Decide Whether Local Governments Can Ban Access to Private Property

Contact:
Rich Coolidge
[email protected]
(720) 420-4255


DENVER (Dec. 8, 2015) – On Wednesday, the Colorado Supreme Court will hear oral arguments to decide whether local communities, specifically Fort Collins and Longmont, can ban oil and natural gas drilling activities, including fracking, from their borders. 

Vital for Colorado, a broad-based coalition of Colorado businesses, associations and individuals, underscored the significance of this landmark case. 

“We feel confident that the Colorado Supreme Court will find that state regulations must be applied uniformly across the state, creating a consistent business climate and protecting private property rights,” said Vital for Colorado Board Chair and local attorney Peter Moore. 

Lower courts overturned a 2012 fracking ban in Longmont and a five-year fracking moratorium in Fort Collins from 2013. The state appeals court declined to weigh in and instead, deferred the matter to the Colorado Supreme Court. 

Kelly Brough, President and CEO of the Denver Metro Chamber of Commerce, said that permitting local rules to preempt state regulations would result in a patchwork of regulations across the state, making Colorado less attractive to current and prospective businesses.

“That would create an unpredictable business climate in our state, which has a ripple effect,” Brough said. “The oil and natural gas industry has a tremendous impact on our small and large businesses, nonprofits and labor organizations, all of which will be impacted by efforts to limit responsible energy development.” 

In Colorado, oil and natural gas operators work with both the surface owners and sub-surface owners to extract the resources. The operators financially compensate both for the minerals extracted from the subsurface owners and for the use of the surface land.

The Colorado Chapter of the National Association of Royalty Owners (NARO) represents many of the state’s 600,000 mineral owners. According to NARO’s Colorado president and Vital for Colorado board member Michelle Smith, these owners are watching the Supreme Court case closely. 

“Many Colorado families rely on these royalty payments for their livelihood or for their retirement and investment savings,” Smith said. “These kinds of local bans wipe out those savings and significantly increase the uncertainty for future financial planning.”

Similarly, surface owners also stand to lose financial opportunities if local governments ban fracking. Groups like the Colorado Farm Bureau recognize the opportunities available to their members, particularly in between growing seasons. 

“We’ve worked closely with Colorado’s oil and gas operators to strike the right balance between the impacts to our farmland and their right to responsible energy development,” said Colorado Farm Bureau Executive Vice President Chad Vorthmann. “These agreements benefit many of our family farms during the off-season and are the result of compromise versus unyieldingness.” 

The numerous stakeholder groups from state and local governments, to property rights owners, to contractors, to communities illustrate the breadth of the impact of Colorado’s oil and natural gas industry, which also permeates throughout the economy generating $25 billion in economic activity and supporting over 200,000 jobs. Upholding the hydraulic fracturing bans will have a negative impact on the industry that will be felt throughout the economy.

Since the original bans passed, Governor John Hickenlooper formed an oil and gas task force that travelled throughout the state collecting public and stakeholder input. This effort resulted in nine recommendations and new regulations aimed at striking a balance among the many stakeholders. The Colorado Oil and Gas Conservation Commission is expected to adopt and implement the final two recommendations early next year.

About Vital for Colorado
Vital for Colorado is a broad coalition of business and civic leaders formed to support responsible energy development.  More than 50,000 chambers, organizations, businesses and Coloradans have signed its pro-energy pledge. For more information, go to www.vitalforcolorado.com